Great brands stand the test of time and are almost immune to competition, making them worthy of their higher multiples, Cramer says.

NEW YORK (TheStreet) -- Today's stock market is all about brands, Jim Cramer said on Mad Money Tuesday. Great brands stand the test of time and are almost immune to competition, making them worthy of their higher multiples, Cramer said.

Tesla Motors (TSLA) is one such iconic brand, having risen almost overnight from a cult favorite to one of America's most admired brands. That explains the 75% rise in Tesla's stock over the past year, Cramer said.

Other brands like Netflix (NFLX), Costco (COST), Starbucks (SBUX) and Walt Disney (DIS) also fall into "icon" status because these brands can raise prices and no one seems to notice, Cramer continued.

Then there are other brands that seem to hold a monopoly in their category. OpenTable (OPEN) comes to mind, as does Priceline.com (PCLN) and even Zillow (Z).

Cramer said the markets are willing to pay up for these high-quality brands, but they're also quick to sell brands that have lost their luster. When it comes to luxury handbags, Coach (COH) used to be the iconic name to beat. But that torch was passed to Michael Kors (KORS), and more recently to Kate Spade (KATE). But today, even Kate Spade faltered on margins, sends shares plummeting 25% on the day.

What's the Deal With Banks?

A deal-less sector in a deal-filled world isn't going to get much love, Cramer told viewers as he explained why the banks and the industrial stocks are losing value by the day.

Cramer explained that consolidation is an integral part of any healthy industry because consolidation takes out competition, lowers costs and allows the remaining companies to boost estimates.

But there just aren't any takeovers happening in the regulation-filled world of the banks that are simply reeling from continuing low interest rates. SunTrust Banks (STI), Wells Fargo (WFC) and KeyCorp (KEY) all posted great earnings, Cramer noted, but their stocks continue to slowly lose value almost daily.

The industrials have also stagnated, as stocks like Eaton (ETN), B/E Aerospace (BEAV) and Honeywell (HON) have proven recently. With their exposure to Europe, Cramer said the industrials have also become a terrible place to be.